$1200 Credit?

[DenverDad]

I just finished filing my taxes using TurboTax.  Towards the end of the session, I was asked if I received the Stimulus payments and if so, how much.  I entered both payments ($1200 and $2400).  Then the software told me I was getting a $1200 credit.  I'm not sure I understand this and am a little worried. 

[Ocala]

When you say both payments - 1200 and 2400, how many people was that for?  Each adult got 1200 in the first round and then 600 in the second.  Are you filing jointly or have child dependents?  This would change a lot of the numbers.  

[DenverDad]

The 1200 and 2400 were for my wife and I.  We file jointly, so they payments were lumped together.

[DoninGA]

The first stimulus payment, EIP1, received in early 2020 for a couple filing as Married Filing Jointly was $2,400

The second stimulus payment, EIP2, received in late December 2020 or early in 2021 for a couple filing as Married Filing Jointly was $1,200.  

Make sure you enter the correct amount for each payment on the TurboTax page in Federal Review.

[DenverDad]

I did enter the amounts correctly.  That's why I didn't understand the credit.

[Ocala]

Okay, hmm, well we are the same, husband and I, we got 2400 (1200 each) first round and 1200 (600 each) second round this past January, but goes on 2020 taxes. Total is the same, 3600, so not sure what's going on. Odd. Maybe if you do it the other way around, 2400 first and then the 1200?  Is there another credit this triggered that you may be eligible for that you didn't realize?

[DoninGA]

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@DenverDad wrote:

I did enter the amounts correctly.  That's why I didn't understand the credit.

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Assuming that you do not have any dependents, look at your federal tax return Form 1040 on Line 30 to see if an amount for the credit is entered.

If you have already filed the tax return sign onto your account - https://myturbotax.intuit.com/

When you sign onto your online account and land on the Tax Home web page, scroll down and click on Add a state. 

This will take you back to the 2020 online tax return.

Click on Tax Tools on the left side of the online program screen.  Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

What is shown on the Form 1040 Line 30?

[DenverDad]

First, Line 30 on my 2020 return has $1200 entered.

Second, I was unable to access my 2019 return by following your instructions.  However, I did print my return last year and where line 30 is supposed to be it says, "Lines 27 through 32 are reserved for future use.  No Line 30 anywhere. 

I use standard deductions per TurboTax's suggestion.  Would that make a difference?

[DoninGA · Accepted solution]

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@DenverDad wrote:

First, Line 30 on my 2020 return has $1200 entered.

Second, I was unable to access my 2019 return by following your instructions.  However, I did print my return last year and where line 30 is supposed to be it says, "Lines 27 through 32 are reserved for future use.  No Line 30 anywhere. 

I use standard deductions per TurboTax's suggestion.  Would that make a difference?

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The 2019 was a typo and should have been 2020 (corrected)

There was no credit for a stimulus payment in tax year 2019.

The credit of $1,200 would seen to indicate that you entered $1,200 for EIP1 instead of $2,400.

You will have to wait for the IRS to either accept or reject your tax return on or after 02/12/2021.  If rejected you can correct the error and e-file again.

If accepted then you will have to wait for the IRS to process your tax return and the tax refund.  If the IRS does not adjust your tax return for the credit, then you will receive the $1,200 as a tax refund.  Once the refund is received you will need to amend the tax return to correct the error and pay back the $1,200.

See this TurboTax support FAQ on amending a tax return originally completed and filed using the 2020 TurboTax online editions - https://ttlc.intuit.com/community/amending/help/how-do-i-amend-my-turbotax-online-return/01/27577

[DenverDad]

Thank you.  I'm 100% positive I entered the correct amounts, but if there was a certain order the entries had to be in, that may be where I messed up.  I was very careful on that screen, but apparently not careful enough.

Thanks again.  I'm hoping they reject me, so I can start all over again.

[DenverDad]

This is an update and I have one more question.  TT tells me my Federal and State returns have been accepted, so I'm nervously waiting to find out what steps I need to take next to correct the error, if it was an error.

I'm 99.5% percent certain that I must have put the $1,200 stimulus amount in the wrong spot, but I have no way of checking that.

My question now is could the $1,200 credit have come from something else.  TT just said "your getting a $1,200 credit".  It didn't explain why.  I retired last year from a part time education job.  In 2019 I made around $12,500.  In 2020 that went to "0" since I left my job.  Would that cause a credit, like for "Average Income" or such?  Sorry if this is a dumb question, but I may need to go to a professional tax preparer to get me of this mess if I can't figure it out.  Big time worrier here.

Thanks so much for your help.

[JamesG1 · Accepted solution]

It is hard to know what would generate your 'credit' without viewing your 2020 Federal tax return.

Are you able to print or view your 2020 Federal 1040 tax return?  In TurboTax Online, follow these directions. 

• Down the left side of the screen, click on Tax Tools.
• Click on Tools.
• Under Other helpful links, click on View Tax Summary.
• Down the left side of the screen, click on Preview My 1040 to see the actual tax return that you prepared.
• Down the left side of the screen, click Back to return.

 You can print or view your full tax returns prior to filing after you have paid for the software.

• Down the left side of the screen, click on Tax Tools.
• Click on Print Center.
• Click Print, save or preview this year's return.
• Click Include government and TurboTax worksheets.

Does line 35a of form 1040 show a refund?  Does line 30 of the 1040 show a Recovery Rebate Credit?  This is the stimulus payment that TurboTax computed.

The Recovery Rebate Credit Worksheet will only show if you received a Recovery Rebate Credit.  Line 16 shows the amount you input for stimulus payment 1.  Line 19 shows the amount you input for stimulus payment 2.

Hope this helps.

[VolvoGirl]

If you have a 1,200  on 1040 line 30 that is only for the extra Stimulus payment Recovery rebate credit you qualify for based on your entries.  How much did you actually receive for each round?  Did you enter both payments?  How many people are on your tax return?  You, spouse, dependents?

The Stimulus Checks are really based on your 2020 return we are filing in 2021, not on 2019 or 2018.  So any amount you already got will be reconciled on your 2020 return line 30.

[DenverDad]

Thank you for your response.  If that's the case then yes, I must have put the amount we received in the wrong place.  We received $2,400 first, then the $1,200.  It sounds like I put them down $1,200 first, then $2,400 second.  I feel so stupid.  The tax return is just for my wife and I, filing jointly.

Hopefully, the IRS will see the mistake and short my refund by $1,200.  If not, I'll have to send in a revised return.

Thanks again for helping me.

[DenverDad]

Thank you so much.  I'll do as you suggest, but I'm pretty sure now that I entered the stimulus payments in the wrong order.  (See my response to VolvoGirl)  I remember entering both payments correctly as far as the amounts, but just in the wrong places.

Thanks again.